Ranbaxy Laboratories Ltd - FTF opportunities monetization.. The ONLY hope!!! - Emkay

Reco: HOLD
CMP: Rs 385
Target Price: Rs 340

- Results below our expectation- Revenue at Rs28.0bn (up 4.4% qoq), EBITDA at Rs2.3bn (up 16.4% qoq) & Adj. PAT at Rs664mn (down 15.8% qoq)

- Slower revenue growth because of new drug pricing policy, lower growth in anti-infective segment, trade related issues in India and lack of post exclusivity sales of generic Lipitor

- US business declined by 6.4% yoy despite increase in market share of generic Absorica to 19%, due to accounting changes in US. Base business revenue flat sequentially

- Low visibility coupled with difficulty in margins improvement led by USFDA import alerts and related other expenses, we retain HOLD rating on the stock with a TP of Rs340

Source : Equity Bulls

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